Rising costs make coffee hard grind
Kiwis should be expected to pay a ‘‘fairer’’ price for a morning flat white, similar to their favourite craft beer or wine, a coffee distributor says.
That follows an announcement by coffee chain Mojo that it would be lifting its coffee and food prices by 10 cents following a 75-cent increase to the minimum wage on April 1 to $16.50.
Coffee Supreme head of brand Al Keating said charging more for a cup of coffee would become a necessity as more cafes were ‘‘struggling massively’’ with diminishing margins.
‘‘We always see the need to raise the price, but it’s a balancing act between what the market will bear and what we can afford to pay our staff,’’ Keating said.
‘‘The price of a beer or wine, people are happy to pay that, but when it comes to a handmade drink people get up in arms about it.’’
According to Immigration New Zealand’s cost of living calculator, the average price for a flat white nationwide is $4.
‘‘If a coffee drinker doesn’t feel the price of their cup is justified, there’s an opportunity to hunt for a quality cup and experience that justifies the cost,’’ Keating said.
The minimum wage rise was a ‘‘very positive thing’’, but it would not have the same impact on Coffee Supreme because it already paid above $16.50 an hour to all staff members.
Coffee Supreme had no immediate plans to raise its prices, but it was looking into the possibility of an increase, he said.
New Zealand Specialty Coffee Association president Jessica Godfrey said New Zealanders had an ‘‘emotional reaction’’ to any price increases in coffee.
The industry had been slow to get the message to consumers that there were many varieties of coffee and the best cost a lot of money, she said.
‘‘The market expectation is that the price of coffee isn’t allowed to go up. If the consumer keeps pushing back on price we will see less and less of those good quality coffees coming through.’’
Hospitality was ‘‘certainly’’ a low-margin industry and operating costs were increasing, she said.